Here Is Why FHA Fees Go Up $150

[KeyWhiz]

I think I'll turn down FHAs for the next few months and let all you guys sort it out. When all the dust settles and we all know better what we are and are not expected to do.

I'm willing to be a bit more diligent with attic and crawlspace inspections but I'm not going to inspect every possibly visible/remotely accessible corner of 18" crawlspaces and insulation-filled attics. I'll turn on the appliances to see if they all turn on, but I'm not sitting through a dishwasher cycle.

I'm not going to do income approaches for SFRs unless I can be paid significantly more.

If there's someone else in my market that wants to do all that extra stuff for my current FHA fee? They can have the work.

 

[Deleted member 128537]

What is FHA's reasoning for doing a 3 year sale history on sales. I can see it on the subject, but not for comparables. The other problem is that often the agents that sold that property are no longer working. And most of the time they don't remember that far back. So this is just another reason not to do FHA work.

 

[Meandering]

FHA covers investment properties - second homes? I thought they were for primary residences only

 

[Deleted member 128537]

FHA covers investment properties - second homes? I thought they were for primary residences only

You are correct. But if for some reason the present occupant is a tenant, and the property is a purchase for permanent residence would they FHA require a 1007 or at least the income approach? I've had that problem in the past for FNMA loans.

 

[azbassman21]

I remember when Fannie introduced the "new" forms in 2004-5, appraisers screamed and hollered and said fees will go up. Then the 1004MC, fees will go up. Most recently CU, fees will go up.

Nothing happened for any of that, and nothing will happen next week with FHA fees.

Because appraisers, in general, are pushovers and you always have someone willing to do the work for "cheaper".

 

[CANative]

FHA covers investment properties - second homes? I thought they were for primary residences only

It doesn't really matter. HUD wants all three approaches.

 

[Deleted member 128537]

Because appraisers, in general, are pushovers and you always have someone willing to do the work for "cheaper".

Unfortunately I agree. When I talk about fees with other appraisers they are sooo afraid to take a stand. I'm in a bit of a different situation. I am semi-retired (or trying to be) and I do work at the fees I want or I just don't do it. Ironically I am plenty busy and turn down work at the fees I would agree to. Just this morning someone wants a rush order. My fee is 550, and I got the order. And it won't be a hard property to appraise. I know appraisers that would be hesitant to ask that kind of fee. Why? I had a plumber just take out a sink and put in a sink when we did our kitchen counter. It didn't take but 4 hours. I got charged $440. Is our time less valuable than a plumber?

I think FHA's should start at 550 and go from there. And I know there are many like me, that simply don't want to hassle with them any longer. And I don't need to. I'll remain on the roster, but I may say, "If you want one you will pay dearly."

I have a friend that 2 years ago was doing work for 350. I told him he was way too cheap. So he raised his prices to 400. Has plenty of work. And that extra 50 per appraisal is quite a bit of money over a year. So I say to my colleagues, "Value your time and your profession."

 

[Duke 73]

All I can say is that I hope more appraisers start thinking like this. I could use the work.

You could use the work? Really? I am so swamped with conventional work, I can't keep up. You can have all that crap FHA stuff. I think you want to be a home inspector LOL.

 

[Duke 73]

I have decided that FHA is not going to be something I do anymore because I believe soon AMC's are going to want multiple pictures of all areas of the crawl space and attic. And I am not crawling into an attic with 30 to 40 inches of insulation. Nor am I going to crawl around in a crawl space that is 18 inches and on dirt. I'm 60. I don't need it anymore. I say if FHA wants a building inspection then get a building inspector. And besides that I know of many scuttle doors that are so hard to get into that I can't even do a head and shoulders. That's because they put 40 inches of insulation over the scuttle. So FHA can take a hike. I think their scope is idiotic and I'm not doing it anymore.

Agree 100%. FHA can take a hike. Not worth the headache.

 

[Non Sequitur]

I think higher fees will be the expectation from users so I think there is an opportunity to raise fees. I'm going from $450 to $500 for non-complex urban/suburban properties.

Short term maybe, the next slow down appraisers will cut their competitors throat the first chance they get. This hub-bub about FHA fees is nothing new. Years ago FHA fees were always higher and no one questioned them, then after the melt down when FHA was "the new sub-prime" fees fell in the toilet because appraisers were chasing work.

Fuel surcharges didn't last (remember the moaning and groaning about $2 gas prices?).
Higher fees for the "new" Fannie forms didn't last.
Higher fees for the 1004MC didn't last.
Higher fees for UAD and CU didn't even get off of the ground.
The moaning and groaning about the supposed "new" guidelines will pass and fees will be no different.

The only thing that will raise fees long term is the continued thinning of the herd. But the AQB is going to screw residential appraisers and open the flood gates before we gain to much traction.